Who owns the Customer Data under the Byrider agreement?
Byrider Franchise · 2025 FDDAnswer from 2025 FDD Document
Except as may be provided in this Agreement, Licensee shall be solely responsible for communications and transmission of any and all data and information of any kind between Licensee and the Licensed System/Hosting Facility (hereinafter "Customer Data").
Licensee assumes exclusive responsibility for the consequences of any instructions Licensee may give Licensor, for Licensee's failure to properly access the Licensed System in the manner prescribed by Licensor, and for Licensee's failure to supply accurate, timely, and/or complete input information.
All network connectivity to and from the Licensed System and Hosting Facility is the responsibility of the Licensee and must be by means of secured network connections and controlled devices.
Network configuration and access, anti-virus tools, firewalls, VPN tools, wireless access points, and possibly other means must be installed, maintained, and activated by the Licensee as directed by the Licensor.
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- Anonymous Data. Licensee hereby grants an irrevocable non-exclusive license to Licensor and its agents, successors, and assigns to use, compile, distribute, market, sell and sublicense statistical analyses, information, data and reports utilizing data aggregated or obtained from Customer Data during the term of this Agreement ("Anonymous Data"). Licensor shall cause the Anonymous Data to be created in a manner which does not include information that personally identifies Licensee or any of its customers. Licensor's use of Anonymous Data shall only be to the extent allowable by law. For example, Licensor shall be permitted to provide Licensee's Customer Data to service bureaus and other parties who aggregate data for reporting and analysis purposes if the Licensor provides substantially similar Customer Data from the Franchisees of the Licensor for the same purpose. Examples of parties would include Experian, Equifax, Transunion, Carfax, and Lexis-Nexis.
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- Confidential Information. Licensee acknowledges that the Licensed Software and Licensed Documentation include proprietary information containing trade secrets and copyrighted materials. Licensee shall not make the Licensed Software or Licensed Documentation or any portion thereof available by assignment, sublicense, transfer, disclosure or any other means for copying or use by any person, firm, or corporation not a party to this Agreement other than its employees, agents and successors. Licensee acknowledges that any unauthorized disclosure to or use by third parties may cause immediate and irreparable harm and significant injury to Licensor that may be difficult to ascertain. Accordingly, Licensee agrees that Licensor will have the right to obtain immediate injunctive relief to enforce obligations under this Agreement, upon breach of such obligations or threat of such breach, in addition to any other remedies to which it may be entitled.
Licensee shall not access nor attempt to gain access to data other than Licensee's own Customer Data.
Licensor may maintain backup Customer Data in perpetuity following the termination of this Agreement.
Source: Item 23 — Receipts (FDD pages 88–335)
What This Means (2025 FDD)
According to Byrider's 2025 Franchise Disclosure Document, the franchisee (Licensee) retains ownership of the Customer Data, but Byrider (Licensor) has specific rights to use it. The franchisee is responsible for the accuracy and security of the data they provide to Byrider's Licensed System. Byrider is allowed to maintain backup Customer Data even after the franchise agreement terminates.
Byrider is granted an irrevocable, non-exclusive license to use, compile, distribute, market, sell, and sublicense statistical analyses, information, data, and reports derived from Customer Data, referred to as "Anonymous Data." This Anonymous Data must be created in a way that doesn't personally identify the franchisee or their customers. Byrider's use of Anonymous Data is restricted to what is legally permissible.
Byrider can provide the franchisee's Customer Data to service bureaus and other parties who aggregate data for reporting and analysis, provided that Byrider supplies similar Customer Data from its other franchisees for the same purpose. Examples of such parties include Experian, Equifax, Transunion, Carfax, and Lexis-Nexis. The franchisee can request copies of their Customer Data from Byrider at their own expense.
While the franchisee owns the Customer Data, they are obligated to protect the confidentiality of Byrider's Licensed Software and Documentation, which contain trade secrets and copyrighted materials. The franchisee cannot disclose this information to third parties and must take precautions to prevent unauthorized use or disclosure. They are also restricted from accessing data other than their own Customer Data within Byrider's systems.